Purchase agreements are a key part of buying and selling real estate. Learn what they include and how they help shape a Minnesota real estate transaction.
If you’re buying or selling property, there’s one document that helps set the stage for the entire transaction: the purchase agreement.
Before a closing date is scheduled or ownership changes hands, the buyer and seller typically need to agree on the terms of the sale. Those terms are outlined in a purchase agreement, which serves as the foundation of the transaction moving forward.
Whether the property is a family home, commercial building, or vacant land, the purchase agreement is one of the most important documents involved in the process.
The Purpose of a Purchase Agreement
At its core, a purchase agreement is a written contract between a buyer and a seller. It outlines the details of the proposed sale and documents the terms both parties have agreed to.
While every transaction is different, purchase agreements commonly include information such as:
Once signed, the agreement becomes the roadmap for the transaction.
Why So Much Detail Matters
Real estate transactions involve more than simply agreeing on a sale price. There are often deadlines, requirements, and responsibilities that need to be clearly documented along the way.
The purchase agreement helps establish important details such as:
Having these terms clearly outlined helps ensure everyone involved understands how the transaction is expected to move forward.
Understanding Contingencies
One of the most important sections of many purchase agreements involves contingencies.
A contingency is a condition that must be satisfied before the transaction can proceed to closing. These provisions are a common part of real estate transactions and can vary depending on the property and the circumstances of the sale.
Some common examples include contingencies related to:
The specific contingencies included in a purchase agreement often depend on what the parties negotiate and agree upon.
What Happens After the Agreement Is Signed?
Signing the purchase agreement is an important milestone, but it’s usually not the end of the process. Once the agreement is in place, the transaction moves into the next phase.
During this time, buyers, sellers, lenders, title companies, and other parties may work through the requirements outlined in the agreement. This can include inspections, financing approvals, title work, and preparing documents needed for closing.
Throughout the process, the purchase agreement serves as the document that guides the transaction and helps keep everyone working toward the same goal.
Purchase Agreements and Real Estate Closings
The purchase agreement and the closing process are closely connected. Many of the steps leading up to closing are driven by the terms contained within the agreement.
Because the agreement outlines deadlines, obligations, and conditions, it often becomes one of the primary documents referenced throughout the transaction. By the time closing day arrives, the parties have generally spent weeks or months working through the terms established in the agreement.
Why Purchase Agreements Are Such an Important Part of Real Estate Transactions
For buyers and sellers alike, a purchase agreement provides structure and clarity. It documents the details of the transaction and establishes a framework for how the sale will move forward.
While every transaction has its own unique circumstances, the purchase agreement remains one of the most significant documents involved in the process.
Final Thoughts
A purchase agreement does much more than put a sale price in writing. It outlines the terms of the transaction, identifies important deadlines, and helps guide the process from the initial agreement through closing.
At Borden, Steinbauer, Krueger & Knudson, P.A., we assist buyers and sellers with real estate transactions and help review the agreements that play such an important role in the buying and selling process.
Born and raised in St. Cloud, Minnesota, Sam is thrilled to return to Central Minnesota after passing the bar exam in 2024. Sam's diverse experience spans roles with the Douglas County Attorney’s Office (Civil Division), a Nebraska lobbying firm, Hudl, and the University of Nebraska Civil Clinic. Through these positions, he gained valuable exposure to various areas of law, including civil litigation, policy advocacy, and client counseling. Early in his legal career, Sam is eager to leverage his skills and experiences to deliver effective and personalized legal solutions for BSKK’s clients.
Areas of Practice:
- Business Litigation
- Construction Litigation
- Property Law & Real Estate
- Contract Disputes
- Personal Injury
- Probate/Trust Disputes
- Landlord/Tenant
- Family Law
Education:
- University of Nebraska College of Law, Lincoln, Nebraska, 2024, J.D.
- Concentration in Real Estate and Business Transactions
- North Dakota State University, Fargo, North Dakota, 2019, B.S.
- Honors: Magna Cum Laude
- Majors: Political Science and Management Communication
Bar Admissions:
- Minnesota 2024
Professional Memberships:
- Minnesota State Bar Association
David V. Hurt is a seasoned litigator who has been advocating for individuals, families, and businesses across Minnesota since 2012. His practice is rooted in a practical, results-driven approach that blends strategic litigation with thoughtful dispute resolution. David's clients trust him to navigate complex legal issues with clarity, efficiency, and unwavering commitment.
He began his legal career clerking for the Honorable John G. Melbye in the Ninth Judicial District of Minnesota, where he gained invaluable perspective on trial practice and judicial reasoning. Since then, he has built a diverse portfolio of experience at firms in Minneapolis, Washington, D.C., and Pennsylvania—litigating matters ranging from corporate and construction disputes to aviation claims.
David’s practice spans a wide range of civil matters, including business formation and litigation, real estate and land use disputes, probate and trust litigation, and family law. He is particularly experienced in resolving high-conflict disputes and routinely employs alternative dispute resolution strategies to secure favorable outcomes for his clients while minimizing cost and disruption.
Areas of Practice:
Education:
Bar Admissions:
Professional Affiliations:
Virginia "Ginny" Knudson represents individuals and businesses in various areas of law, including, estate planning and probate, business and corporate, real estate, and governmental relations. Ginny provides mediation services in divorce and custody, especially for business owners and high wage-earners, as well as for real estate, probate and business disputes. Ginny has been selected as a top attorney by Minnesota Super Lawyer Magazine from for 13 years.
Areas of Practice:
– Estate planning
– Business and corporate
– Real estate and landlord representation
– Probate disputes, guardianships and conservatorships
– Municipal and governmental relations
-- Mediation
Education:
– University of Minnesota Law School, Minneapolis, Minnesota, 1994, J.D.
– Honors: Cum Laude
– University of St. Thomas, Minneapolis, Minnesota, 1991, B.A.
– Honors: Summa Cum Laude
– Honors: Aquinas Scholar
– Major: Economics, Spanish, Minor: Business
Bar Admissions:
– Minnesota, 1994
– U.S. District Court District of Minnesota, 1994
– U.S. Court of Appeals 8th Circuit, 1996
Professional Memberships:
– St. Francis Church Finance Council, 2004–present, Chair and Trustee
- Essentia-St. Joseph's Medical Center, Directors Council, 2020-present
- Lakes Area Music Festival Board, Board Member 2022-present
– Brainerd Area Chamber of Commerce, 2016-2022, Board Member and Chair
– Mount Ski Gull, Board Member, 2014-2019
– Benevolent and Protective Order of Elks, Brainerd Lodge #615
– Zonta International, 1999–2018
– Jaycees, Brainerd, 1998–1999
– Aitkin/Crow Wing County Bar Association, 2000–2001, President
– Aitkin/Crow Wing County Bar Association, 1999–2000, Vice-President
Patrick has been practicing law since 1980, dedicating over 90% of his career to representing personal injury victims and their families, as well as handling a wide range of civil litigation matters. He is a Certified Trial Specialist recognized by the Minnesota Bar Association and was named a leading American attorney in personal injury law by the American Research Corporation. His professional excellence also earned him recognition as a Super Lawyer by Minnesota Law & Politics, placing him among the top six percent of attorneys in Minnesota.
Pat is enjoying a well-deserved retirement after 40+ years of practice. We thank Pat for his years of dedication to the firm and his service to the Brainerd Lakes Area. His legacy is marked by a deep commitment to justice, compassion for clients, and significant contributions to the legal profession.
Areas of Practice (during his active years):
Plaintiff’s Personal Injury
Civil Litigation
Real Estate Litigation
Construction Litigation
Contract Litigation
Mediation and Arbitration
Education:
– University of North Dakota School of Law, Grand Forks, ND – J.D., 1980
- Honors: Graduate of the Year, Bruce Inn
- North Dakota Law Review, 1979–1980
– Concordia College, Moorhead, MN – B.A., 1974
- Major: Business Administration / Hospital Administration
Bar Admissions:
Minnesota, 1980
U.S. District Court, District of Minnesota, 1981
Professional Memberships:
American Bar Association, Member
Minnesota State Bar Association, Member
American Association for Justice, Member
Minnesota Association for Justice, Member
Crow Wing-Aitkin County Bar Association, Past President
Brainerd Area Chamber of Commerce, Past Board Member
Brainerd Jaycees, Past President (1981–1982)
Benevolent and Protective Order of Elks, Brainerd Lodge #615, Past Exalted Ruler
P.O.R.T. Group Home, Past Member, Board of Directors
